Ticker: CHKGF, Buy below $15.
CK Asset Holdings is an real-estate and infrastructure assets focused holding company based in Hong Kong .
Why I Would Buy
- Low Earnings Multiple – CK Asset trades at < 7x earnings.
- Below Book – CK Assets is trading at 0.75 times tangible book value.
- Low Payout – The dividend payout ratio is at a very healthy 20%, although the yield itself is < 3%.
- High ROE – Return on Equity > 10% for past few years.
- Insider Buying – Li Ka Shing (the “superman”) purchased significant blocks of shares from the open market.
What Could Go Wrong
- Concentration – 80% of revenues are derived from real estate in Hong Kong and China, where there is a persistent talk of a bubble forming.
- Conglomerate – CK Assets is a weird conglomerate holding disparate assets such as real estate, airline leasing, home heating services and the like.
Disclosure: I am long CHKGF, please read additional disclosures here before taking any action based on this post.